Working with a contracting on a renovation? Follow these tips

Working with a contracting on a renovation? Follow these tips

Alan AsriantsBusiness Member
Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes

If you’ve never worked with a contractor before, there’s a good chance you could end up frustrated. Contractors are often notorious for not finishing jobs, taking too long, or failing to complete all the work you agreed on. Below are a few helpful tips to help you avoid many of these common headaches:

1. Get references
Always ask for references. Talk to people who have used the contractor before—ask about their experience and request photos of the completed work. Many people choose the lowest bidder and end up with the lowest quality results. While price can reflect quality, that’s not always the case. I personally work with contractors who charge less but deliver excellent results. A couple of solid references can go a long way in helping you avoid being taken advantage of.

2. Write a detailed contract
Contractors often aren’t great at writing contracts—especially those offering cheaper bids. Some may not offer a contract at all. Do not skip this step. Even if a contractor sends a basic quote or scope of work, I make sure to rewrite it to be as detailed as possible—especially when working with them for the first time. The more detail you include, the easier it will be to point to the contract when there’s a dispute about what was agreed upon.

3. Avoid large upfront deposits
There’s usually no need to give a contractor 50% upfront unless it’s a large-scale job like roofing. I prefer paying in increments tied to completed milestones rather than two large lump sums. As you get to know and trust the contractor, you’ll be better able to adjust how you handle payments.

4. Watch for the runaround
This one is tough, especially if you’re new to renovations. Some contractors are very convincing when explaining why their shortcut is “the right way” to do something. In many cases, it’s just the cheaper or easier option—not the best one. If you’re unsure, ask a friend, mentor, or your real estate agent. You can also search YouTube for how a specific task—like installing tile or cabinets—should be done. And don’t assume that a high price guarantees high-quality work. I’ve seen contractors charge top dollar for results that were far worse than my lower-priced, more skilled crews.

5. Leave enough "juice to squeeze"
As your project nears completion, don’t leave only a small amount unpaid. If your renovation budget is $10,000 and you leave only $500 to cover finishing touches, you’ll likely have a hard time getting the contractor back to complete them. Those final details—like caulking, silicone, and trim—are often time-consuming and make a big difference in the finished look. Give them a real incentive to return. Personally, I wouldn’t leave less than 10% of the budget unpaid—ideally closer to 25%.

6. Do a thorough walkthrough before final payment
Before you make that final payment, double-check everything. Open every cabinet door, test all appliances, run the water—both hot and cold. Look for any floor separation, unfinished details, or missing elements. Go over everything thoroughly. If you’re not sure what to check, pull up a walkthrough video on YouTube or ask me.

Best of luck—and don’t be afraid to hold your contractor to a high standard!

Alan Asriants - New Century Real Estate 591 Reviews
View Page
5Reply
57 views

1 Reply

Jump to latestLatest
  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    1y

    Here's a few others:

    1. Make sure they are licensed and insured 

    2. I will say it again, Insurance, Insurance, Insurance (additional insured is a must!)

    3. Labor warranty 

    4. Understand the downstream subcontractor relationships (Probably the most overlooked aspect of hiring a GC). Most fail to recognize the lack of a direct contractual relationships can be devestating in the event of a dispute or construcion defect caused by this sub contractor if the appropriate contract and insurance is not in place. A few other recommendations pertaining to the subcontractor relationships:

    -If the GC tells you they are doing everything, chances are they are not licensed andinsured for each scope. Customarily the plumber, electrican, HVAC subcontractor hold their own trade license.

    -Find out who these sub contractors are 

    -Do they have approprioate insurance & are you listed as additional insured?

    - Are they getting paid and are their lien waivers?

Join the conversationCreate a free account to reply, vote on answers and follow this thread.